Memecoins are cryptocurrencies created around internet memes, pop culture, or viral humor rather than strong utility or technology. They often gain traction through community hype, celebrity endorsements, or social media trends. While some memecoins reach massive market caps, they are typically high-risk and highly volatile, with prices driven more by sentiment than fundamentals. They are also frequently targets of pump and dump schemes due to their high volatility and speculative nature.
Example:
Dogecoin (DOGE) started as a joke based on the Doge meme but gained mainstream attention after Elon Musk’s tweets, causing extreme price spikes.